If you look at page 12 of the owner's manual you'll see that the lever is called a "slide stop" not a "slide release". Then go to page 16 & read the bottom paragraph you'll see that it says -
"Pull the slide back to the rear and release it, allowing it to carry fully forward. This strips the cartridge from the magazine and seats it in the chamber of the barrel."
It never mentions the slide stop as a slide release. Although there's nothing wrong with the pistol if the slide stop allows you to use it as a slide release my rule of thumb has always been that if a part is hard to move in a position that wasn't intended I won't move it. That particular part has the tension of the extended recoil spring behind it it when the slide is locked open. It's possible with use that it'll be easier to move in a position that will release the slide that means (to me) that there's some wear going on & a loss of material. The slingshot method to release the slide & put the pistol in battery ready to shoot is my preferred method even though with a couple of thousand rounds through my 40c the slide stop is easier to use.
By the way - any info you get from someone with a 9C or even a full size M&P is completely valid in regard to a 40C. The 9C & 40C are identical except for the barrel & magazines & I believe maybe the recoil spring.
Almost forgot to mention your shot placement problem. According to my handgun accuracy chart low & left is "tightening grip while pulling trigger". Low alone is breaking wrist down, pushing forward or dropping head. Left alone is "squeezing thumb or too much trigger finger". That's shooter error. Can't help you if it 's a mechanical error or sight error.